Predict your next investment

ENVIRONMENTAL SERVICES & EQUIPMENT | Solid Waste

See what CB Insights has to offer

Stage

Acquired | Acquired

Valuation

$0000 

About Arrow Waste Management

Arrow Waste Management is a waste management company based in Singapore.

Arrow Waste Management Headquarter Location

2 Jurong East Street 21 #04-33X, Imm Building

609601,

Singapore

Latest Arrow Waste Management News

Response to SGX Queries::

Jul 26, 2021

RESPONSE TO SGX QUERIES : : Message : (Incorporated in Singapore with limited liability) (Company registration number 200007107D) RESPONSE TO THE QUERIES FROM THE SINGAPORE EXCHANGE REGULATION IN RELATION TO THE COMPANY'S ANNOUNCEMENT DATED 15 JULY 2021 ON THE UNAUDITED FOURTH QUARTER FINANCIAL STATEMENTS AND DIVIDEND ANNOUNCEMENT FOR THE PERIOD ENDED 31 MAY 2021 The Board of Directors (the "Board" or the "Directors") of TEE International Limited (the "Company", and together with its subsidiaries, the "Group") would like to respond to the following queries raised by Singapore Exchange Regulation ("SGX RegCo") on 22 July 2021 in relation to the Company's announcement dated 15 July 2021 on the Unaudited Fourth Quarter Financial Statements and Dividend Announcement for the Period Ended 31 May 2021 ("4Q FY2021"). Query No 1 On page 2 of the Company's Full Year FY2021 results, the Company disclosed that "the expected completion date of the disposal of Arrow Waste Management Pte. Please provide details of the performance of Arrow Waste Management Pte Ltd in view that it was loss making of S$4.5 million in FY2020. Company's Response As announced on 30 June 2020, the expected completion date of the disposal of Arrow Waste Management Pte. Ltd. ("AWM") was on 29 May 2020. However, subsequent to that, the Company and its subsidiary, TEE Infrastructure Private Limited ("TEE Infra") had received notices of termination of the proposed disposal from the Purchaser. The Company, TEE Infra, AWM and the Purchaser and the Purchaser's holding company Nutara Investment Pte. Ltd. have subsequently on 18 December 2020 entered into a settlement agreement and TEE Infra and the Purchaser did not proceed with the Proposed Disposal. The Group has accounted for the discontinued operations and recognised a S$50,000 rebate from the Purchaser up to the second quarter ended 30 November 2020. As at 4Q FY2021, AWM has reinstatement and returned all 4 plots of leasehold lands that it owns to Jurong Town Corporation ("JTC") for zero consideration due to early termination of the lease term with JTC. AWM is currently dormant. Please also refer the Company's announcement dated 28 December 2020 in response to the queries from the SGX-ST on proposed disposal of a subsidiary for more information. 1 Query No 2 On page 3 of the Company's Full Year FY2021 results, the Company disclosed Allowance for contract assets amounting to S$17.6 million. Please disclose the reason for the significant allowance of S$17.6 million and the value of this contract. Please disclose when the contract(s) are expected to be completed. Company's Response Query No 3 On page 3 of the Company's Full Year FY2021 results, the Company disclosed Provision of performance bonds/claims from a contract counterparty amounting to S$17.9million. Please provide details of these claims and the entity where the performance bond was issued. Please disclose the reasons for the claims/provision of the significant amount for $17.9 million and what is the contract value relating to these claims/allowance. Please also disclose when the relevant contracts are expected to be completed. 2 Company's Response The following, are the details of the provision of performance bonds or claims under Trans Equatorial Engineering Pte Ltd ("Trans Equatorial"): Job no. Query No 4 In view of the Company's losses from continuing operations of S$(119,061,000) for FY2021, working capital deficit of S$(152,734,000) and net capital deficit of S$(100,015,000) as at 31 May 2021. Please provide: the Board's opinion if the Company will be able to operate as going concern and basis for the Board's view. the Board's confirmation that all material disclosures have been announced. 3 Company's Response The Company has appointed RSM Corporate Advisory Pte. Ltd. ("RSM") as financial consultant in June 2021, to, inter alia, undertake a review of the Group's businesses and assist to formulate restructuring plans to improve the financial position and/or performance of the Group. To-date, RSM is in the process of reviewing the Group's operations and working with the Company and is expected to formulate and finalise its plans by end of July 2021. [Based on information made available from the management and RSM to-date, in view of the losses incurred by the Group, the Board notes preliminarily that a cash or equity injection and/or a debt restructuring exercise may be required in order for the Group to continue as a going concern. Nonetheless, the Board would like to strongly emphasise that the current situation is highly uncertain and it would only be able to form a final opinion when (1) RSM completes its review and advice on the eventual outcome of such review; (2) the outcome of discussions with key customers, creditors and banks is known and (3) the restructuring plans and its impact, whether financial or non- financial on the Company and/or its respective subsidiaries, have been finalised. Accordingly, as emphasised in the 4Q FY2021 announcement on 15 July 2021, the Company may have to make material adjustments to its financial performance and financial position for the financial period ended 31 May 2021. An appropriate announcement will be made accordingly. To the best of the Board's knowledge, information and belief, pending the finalisation of the abovementioned matters, the Board confirms that all material disclosures as required pursuant to the Listing Manual of the Singapore Exchange Securities Trading Limited ("SGX-ST") have been announced. The Company will make further announcements as and when there are any material developments on this matter. Query No 5 Company's Response As at 31 May 2021, the Group's engineering and construction order book stood at S$212.9 million. Nonetheless, given the limited amount of financial resources in the Group, as part of its on-going restructuring exercise, the Group is in the midst of negotiating to novate or terminate certain projects amounting in aggregate of approximately S$121.2 million. If these projects subject to potential novation or termination are disregarded, the order book would be reduced to S$91.7 million. Query No 6 On page 17 of the Company's Full Year FY2021 results, the Company disclosed that S$6.339 million from the net proceeds of the renounceable non-underwritten rights issue announced on 29 November 2018 was utilised to finance the expansion and growth of existing businesses, acquisitions and new investments. Please provide details of these businesses and acquisitions where the proceeds from the placement was utilised. 4 Company's Response The details and breakdown of the amount for the finance of business expansion and new acquisitions and investment are as follows: Amount after

Predict your next investment

The CB Insights tech market intelligence platform analyzes millions of data points on venture capital, startups, patents , partnerships and news mentions to help you see tomorrow's opportunities, today.

CB Insights uses Cookies

CBI websites generally use certain cookies to enable better interactions with our sites and services. Use of these cookies, which may be stored on your device, permits us to improve and customize your experience. You can read more about your cookie choices at our privacy policy here. By continuing to use this site you are consenting to these choices.